rue21 Disclosure Statement Approved

The U.S. Bankruptcy Court approved rue21’s Disclosure Statement and scheduled an August 29, 2017 hearing to consider the Debtors’ Joint Plan of Reorganization, with objections due by August 21, 2017.

As previously reported, “Subject to confirmation of the Plan, upon the Effective Date, the Debtors will have reduced approximately $700 million in funded debt from the Debtors’ balance sheet, providing the Debtors with the capital necessary to fund ongoing operations. Upon exiting these Chapter 11 Cases, the Reorganized Debtors’ capital structure will consist of the Exit ABL Facility in the aggregate principal amount of up to $125,000,000 at any time outstanding (with approximately $38.6 million expected to be outstanding on the Effective Date) and the Exit Term Loan Facility in the aggregate principal amount of $50,000,000, plus the amount of any unpaid and accrued interest under the DIP Term Loan Credit Facility as of the Effective Date.”

Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.

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